A: Yes. PBGC has completed the re-valuation of the pension plan assets and used that information to update the remaining plan processing reports (such as the Actuarial Case Memorandum and Report). We are sending revised benefit determinations to participants whose benefits are affected by the asset re-evaluation.
A: Yes. The value of the plan assets is about one-half of 1% (0.5%) higher than in the initial evaluation.
A: For some participants, yes. As part of the benefit determination process, PBGC allocates plan assets to various categories of benefits in priority order as specified in the law. The allocation of additional plan assets results in benefit increases for about 6,000 of the 13,000 participants in the Delta Pilot Retirement Plan. The average increase in monthly benefits is less than four dollars. 95% of the increases are less than ten dollars per month. Approximately 7,000 participants will see no change in the amount of their monthly benefit.
A: Yes. PBGC will notify participants in writing. We will send revised benefit determinations to participants whose benefits will increase because of the re-evaluation. We will also send written notices to participants whose benefits are not affected by the re-evaluation.
A: We began sending letters in early June 2017 and expect to be completed within four months. Some complex cases, such as those involving qualified domestic relations orders, may take longer.
A: If your benefit will change, you will receive a benefit determination letter that tells you your new benefit amount. We also will tell you how much we owe you in back payments, including interest, to make up for previous underpayments.
A: Yes. Participants who receive a revised benefit determination will be able to appeal the new determination.
A: In Fall 2017, after we after have notified all participants, we will increase monthly benefits and issue catch-up back payments with interest. Some complex cases, such as those involving qualified domestic relations orders, may take longer.
A: If the catch-up back payment is less than $5,000 or is less than three times your monthly benefit, PBGC will make the catch-up back payment automatically. If you get your monthly payment by check, we will issue a check for the catch-up back payment. If you get your monthly payment by electronic deposit, we will make the catch-up back payment by electronic deposit to the same account.
If the catch-up back payment is $5,000 or more and at least three times the amount of your monthly benefit, we can pay the back payment only after we receive a separate “Application for Lump Sum Payment” from you for your catch-up back payment. We will include this application with your benefit determination.